Edith Lank: It's nice to worry about profits

5:44 PM,
Oct. 24, 2012

Written by

Edith Lank

Dear Edith: Four years ago, I became a Florida resident and my summer home in New York state became my secondary home. Today, I would like to sell my New York home and build another summer home in the Rochester area. If I make a profit on the New York home can I put all of the profit into the building of that new home without creating a tax event? Or should I become a New York state resident again before selling my secondary home?

- D.

Answer: The IRS allows some tax-free profit on the sale of your main residence, but not on your vacation home. In any event, it no longer makes any difference what use you make of ...